January 27, 2024 |
Dlf Enters Into an Agreement to Acquire 29-acre Land in Gurgaon for Rs 825 Crore
DLF Ltd has acquired 29-acre land in Golf Course Extension Gurugram, as India’s top real estate developer continues to grow its robust land bank to capitalise on a booming property market.
DLF said it will pay Rs 825 crore to two lenders who have control over the land with a development potential of 7.5 million sq ft. The land deal is a first for DLF after many years.
“We have been working with the two lenders and the developer for almost 12 months trying to structure this transaction. Today we have signed up the documents to acquire the debt from these two lenders. It may take over 12 months to bring it to the market, but it will be a very big addition to our portfolio,” said managing director Ashok Kumar Tyagi during an investors’ call to discuss December quarter earnings on Thursday.
In a regulatory filing on Thursday, DLF said that it has entered into an agreement with Standard Chartered Bank, Singapore Branch, DB International (Asia) Limited, Singapore and Deutsche Investments India Private Limited for purchase of bonds of face value of Rs 600 crore on which the bond issuer has defaulted in repayment including accrued interest thereon.
The company’s last project in the micro market of Gurugam was The Arbour, which was sold out in three days, generating sales of Rs 8,000 crore.
“Rs 825 crore was the outstanding loan that the developer had with these two banks; actually, the loan was about Rs 1,200 crore. The bankers agreed to take a haircut as a one-time settlement. So Rs 825 crore is what we have bought the loan at from the bankers,” Tyagi said.
“We are in the process of finalising our agreement with the developer for acquisition of these 29 acres with the requisite FAR. Therefore, the consideration would be slightly higher than Rs 825 crore, which is the price at which we have bought these bonds from the current bond holders so that now we are the lender,” Tyagi said.
DLF plans to monetise the land parcel in the next 12 months.
DLF on Wednesday posted a 26% increase in December quarter net profit, benefitting from record sales bookings helped by multiple project launches.
The company clocked a net profit of Rs 648 crore for the quarter and sales bookings of Rs 9,047 crore.
DLF launched three new projects, two in Gurugram and the other in Panchkula, totalling more than 5 million square feet during the quarter.
“The residential real estate has become a priority. We should look at the young generation who used to prefer to live on rentals then actually buy. I am seeing a major shift from 30 year onwards, which is now coming into the actual purchase of residential properties. Also, post Covid, people want better homes, better connectivity and more spacious homes,” said Aakash Ohri, joint managing director and chief business officer at DLF Home Developers Ltd during the call.
DLF recently sold 1,113 luxury homes priced at about Rs 6 crore each, showcasing sustained strong demand in the residential real estate sector.
Source : ET
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